Sometimes the borrower can be his own worst enemy

Home Inspector with, covering the USA S0289

Sometimes the borrower can be his own worst enemy

That is right. I have a project going on right now. The borrower continued to get in the way, remove drywall on his own that wasn't in the scope of work. Remove the kitchen cabinets that wasn't in the scope. Both of these things became issues when the inspector came by and wasn't pleased. In fact it uncovered some sub standard framing in this old house that caused the inspector to want all of the drywall removed. 

If you want this kind of stuff completed, include it in your scope, yes, it will make the loan amount larger and more realistic budget with a larger contingency reserve to handle it. With the smaller budget comes a small amount of money in case you have issues. Catch 22 maybe but no  one is going to keep this FHA 203k loan any longer than it takes to get the work completed. 

This client thought he would like to keep some of the construction remains for his little projects until his mom came by and suggested all of the debris should be hauled away. LOL. Now he wants to hold filing the final draw paperwork till this is all removed. That is fine but it is going to bite him. The contractor could have and would have under normal circumstances. 

By holding the final draw paperwork and not signing it he is also delaying his final inspections till the debris his hauled away. He is wanting to refinance out of the FHA loan and get rid of his PMI. Good luck, now he is calling and asking if he can get the final inspection signed off... NO, not till all the debris is removed. 






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Mike Young, 203k Team Leader    Mike ready for your 203k order

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